Your home expenses will rise after you become parents, so what can you do to manage the expenses? You need effective planning, so that you are able to handle the pressure.
When do you start planning?
The earlier the better, before the birth of the child is the appropriate time to start planning. You need to create a situation where your family would be surviving on a single salary. The husband’s salary could be utilized in meeting the daily expenses and the wife’s salary could be put aside or rather invested.
There would be two benefits of doing this, firstly the money put aside would be a saving and will be utilized in the future. Secondly, it would be a trial situation where you would know that how comfortable would your family be on a single salary at least for a couple of months, until the mother goes back to work. The money saved by you will help a lot if you think of taking some time off from office.
The child‘s expense needs to be considered in the daily budget
It is obvious that the child would have expenses of his own. From food, diapers, toiletry, health insurance, to toys and entertainment stuff. You will have to keep aside a budget before hand for the baby’s daily needs.
You can speak to a friend or an acquaintance, who has gone through this stage. Then consider the present day prices of the essential commodities that you need to buy. This will give you a fair idea of the extra expense that you will have to meet after the birth of the child.
Pay more than the minimum due amount, at least on the high interest debts. That will help in clearing off the debt faster and you will pay a lesser total amount. If you are unable to pay-off completely, pay the most you can afford. After the birth of the child, you can go slow on the payments till the time you gain financially.
Going slow does not mean that you pay less than or just the minimum due. Try to keep things in a balance, after six months or one year your expenses are not going to decrease. In fact, in the process of raising a child the expenses will keep increasing.
Inform your superiors in office
The expecting mother should inform her boss in the office before it is revealed automatically. Waiting for the crucial first three months is ok, as the risk of a miscarriage is drastically reduced after that. Be sure when to time the news, like declaring it after an achievement or completion of a big project will be a better option than just announcing it casually. In most of the cases, the bosses are supportive, if you make the announcement after an achievement that will create a positive impression on your boss.
Review your health insurance
Make sure you understand the medical insurance coverage for the mother. If your requirements are not met by your current plan, consider switching it over. You will have to increase the budget for the new plan as well. Consider a family plan rather than a single policy, although it will cost more but the protection would also be enhanced.
The idea is to plan ahead so that you are to cope with the increasing expenses after you become a parent. Cutting down on non-essential expenses and focusing on savings before the birth of the child will help you manage your home expenses with ease later.